This report provides a detailed financial analysis of ANZ and Commonwealth Bank, including horizontal and vertical analysis and ratio analysis. Recommendations are provided for both companies based on the analysis. It can be concluded that while Commonwealth Bank's income and profit have increased over the past 3 years, there is a lot of risk in terms of cash flow and the increase in debt capital year on year. On the other hand, ANZ has been fairly stable in all respects, but it needs to take strong steps to increase revenue and profitability.